tv Cavuto Coast to Coast FOX Business May 26, 2016 12:00pm-2:01pm EDT
reported about venezuela. the crown jewel of socialism, there is no toilet paper, no food, no starving in the streets, this is what socialism and communism reeks. this is what the millennials need to understand. stuart: neil cavuto, it is yours, take it away. neil: more on that story, thank you very much, i am neil cavuto. it is really the worst of the worst, take a look at these protests that are going on in chicago, the chicago area for higher minimum wage but linking them to something down south, in venezuela, demands for more assuming you could get more and not have a come out of your i, linked in a weird way. sometimes you run out of money. sometimes you run out of people who will pay the money. sometimes you just run.
liz mcdonald with disturbing video of what is going on in venezuela. liz: including bernie sanders. that is quote from people on the ground. they are saying this is what happens under socialism. let's look at the first video. this is on the highway, the largest oil reserves and steel operation. regular middle-class people pulling up in their cars on the highway to ambush the grocery truck with rice in it and they are looting, you can see in this video the national guard is standing by watching and letting it happen so the next video, this is graphic and it will be disturbing, people outside a shopping mall where restaurants are located going through garbage to take the garbage and eat it. this is food that has been thrown away, people are starting
their, telling foxbusiness we are left to eating dog food. neil: it is disturbing to look at but this happens when governments run out of money, when they can't print money, when they make promises they can't keep because people pay the bills have long left town. i do think without being right or left on this that this is a lesson here. liz: venezuela has one of the world's biggest oil major and oil reserves in the world but at the same time the middle-class got demolished, entrepreneurs got demolished, 90% plus tax rates. i am told people say to me why work if the government is going to take everything? they moved into the black market doing trade and toilet paper or paper towels. there is a state of emergency through july, fears of a military crackdown, a news
blackout, venezuela won't except medical help from the world health organization. they are contracting into the depression, this is what is happening, president hugo chavez's hand-picked successor trying to avoid default. he doesn't want that embarrassment and if they do default in venezuela it will be twice as bad as when argentina defaulted in 2001, the worst default in history for an entire world. the question is where is bernie sanders, where is michael moore, where is sean penn on this? this is an example what happens when socialism falls apart. neil: as we look at this it is important to point out the thing with socialism is eventually run out of other people's money but that was the case here, the irony of venezuela to your point with the collapse in oil prices, sitting on a gold mine with all the money that should easily cover any needs this country has
but even with that, not enough. liz: what did they do at the same time venezuela was appropriating the income other companies, they also slapped through very high tax rates. they also passed rigid labor laws called the frozen jobs, you could keep your job even if you didn't show up. the business people were saying we don't want to hire anybody because they are not showing up for work so this is their policy at play. stuart: unsustainable economic model. i want to look back, a lot of you -- they are looting. a lot of these people, their kids are starving and think about it, what would you do in this situation? you might do the same thing, you got to feed your family, you got
to find a way, any way to do that. every authority, every politician on the right or left promised, there is no way out so you take what you can get when you can get it. brian westberries here, what do you think of this? >> it is in my home state of illinois which is a disaster, totally broke and the history of man has been a battle between the creation of wealth on the one hand and the redistribution of wealth on the other. if you think about the creators of wealth they are in the business of seducing you. i want you to buy the iphone because it is a great product, because it serves you, the price falls, it makes your life better whereas the people that believe in redistribution they believe in force, they will force you to take care of them and when you
look at the divergence of these two things in our world today, the us economy and the global economy the cost of government keeps going up faster than incomes, the price of technology keeps falling beneath growth in incomes. the private sector is making you better off while government is making you worse off. stuart: neil: what i worry about is we blithely ignore all the warning signs that might make us the next venezuela. we can avoid this but i think on the left and the right is ignorance of basic math, not enough money coming in for all the money going out and i think when any time there is a good time we are okay with it. they were in venezuela when the oil revenue was coming in but then not so good when it wasn't. what i am asking you is to candidates have a responsibility to look at this and say this is
where big promises get you unless you have the math to back up what you want to do. >> a couple points i want to make. i am certainly no expert on the venezuelan economy but it is pretty difficult to draw tight parallels between what is happening there and anything happening in this country as we started the segment by talking about the protest in chicago for a higher minimum wage. i suppose one could say something about giving more to people and the economic ruin we think we might face if they get more. the reality is people who are protesting for $15 minimum wage are protesting for $31,000 a year salary from companies making billions in profits. people -- someone has to foot the bill. someone else to pay the bill. when there is no money there.
>> what we forget is when we actually invest in people we see a return on that. and it is teetering, the single-payer system, hillary clinton asking medicare for 50-year-olds. i hear what the individual is saying and it is a good point. you pay more to people and they will put more by spending into the us economy. that is what 15 minimum wage protesters are saying. at the same time when you have a robotic revolution where robots can make salad and french fries and donuts, that reality, very difficult when you have little mom and pops running those franchises, that -- neil: i'm not meeting to disparage -- i have vaulted republicans on this show for pouring good money after bad,
talking a good game on fiscal restraint and not exercising it when it comes to their own near and dear programs. what i'm saying, trying to tie this in is we get to a point where we just assume we are going to get all this stuff and someone else will pay for it. the shrinking tax base in venezuela is an example that a fifth of the population pay taxes and that is something not sustainable, in this country about half are not paying total income taxes, not long ago was only 20%. my worry, i don't care if you are republican or democrat someone has to wake up, whatever your bias, whatever your pet projects this math isn't working. it is not working. >> absolutely right. i'm going to go to a base concept, every dollar of gdp of any economy in the world has to be split between the government and the private sector so the
more you grow the government the less there is for the private sector and the united states in the past 16 years has grown the government 30% faster than population growth. that is why the middle-class is hurting. donald trump is wrong. it is not because china and mexico are stealing our jobs. bernie sanders and hillary are wrong, it is not because the wealthy are stealing the income from the middle-class. neil: better than we were, economically the economy has come back from where was eight years ago. >> gosh yes. neil: but there is a price to pay for this. do we, have we set a dangerous precedent where we expect, plan on the government to get us out of buying for it. >> qed was a mistake, all of that stuff.
>> no. i don't think so. brian made the point, what is the middle-class hurting? i would say the middle-class is hurting to the extent it is for a lot of reasons. one is the decline of labor unions, i am sure you know this, the longest period of economic growth was when we had a strong middle class and also had strong labor unions from the 1930s to the 1970s, you can track the decline. neil: what about the boom we had with ronald reagan to bill clinton? >> not sure we can say we had a big boom with ronald reagan. the 20 did bill bill clinton have a big boom? >> a huge boom. go back to the supposedly great 1950s and 60s when everybody was so well off. do you know how big the federal government was? non-defense government spending was 6% of gdp. today is 18% so if government can actually make people better
off why aren't they better off? if you want to go back to the 50s and 60s, make the government one in third the size it is today. >> something else to brian's said are you better off four years ago? are you better off than you were 20 years ago? that is where household income has been. we are at $19 trillion in the federal deficit, household income has not grown, flatlined it 1996 levels when bill clinton was in office. neil: we are trying to look at what is going on in venezuela. people say that could never happen here. about a year ago in venezuela, it could never happen here, it can. people are eating their own garbage. in the meantime these protests going on, not the ones in venezuela but the ones at donald trump events. the question of tea parties, if
you have a peaceful protest regardless of your point of view, why is that never announced? why don't people make anything of that? conservative protests, they don't turntables or punching people out and all that so when it happens at trump events largely by those protesting trump events it somehow is spun in the media as trump folks's falls, i remember what the tea partiers as well, if there was anything that united tea partiers it was the notion they were going to quietly protest spending yet they were portrayed as unglued folks. it is not right. >> it is not right. one fundamental difference between the tea party and what is going on here and what i
would call not protests but riots. these are violently oriented. years the primary difference, the tea party we pay for that. i remember pouring tons of my own personal money into that because it really was a peaceful protest. these are funded by george soros. the tea party is accused of being astroturfs, these events are astroturfs with the purpose of destroying the real outsider candidate in all that, and the gop nominee, donald trump. many people, many who attend these right protests have no idea that donald trump is the actual outsider candidate. they don't know their issues, don't know why they are there. neil: you follow this closer than i do. i don't know if they are all george soros inspired but i do know the appointment protests, some of the same crowd we see showing up at one event followed by another and furthermore singling out a candidate who
might not be saying what they like about you don't see the flipside of those protests against the liberal candidate, extreme candidate, if this gets the play in the media and protesters are not the issue the guy triggering the protest is. kind of weird. >> a lot is weird about this. one thing that is weird about this is there are never any actual -- nothing ever happens to these people. they might get arrested if they injure a cop or a horse ends up being killed because of their violence. they might get arrested but where are prosecutors charging these people with crimes? you go all the way back to ferguson, look at the black lives matter, people are arrested but where are the actual prosecutions that follow up on that, i think donald trump and if there are legitimate and
honest, people like hillary clinton, debbie wasserman schultz and bernie sanders should be demanding to know what comes of violent protesters, will they say they don't like violence? should they be asking what crimes are punished? where is the humane society? where are the animal rights organizations who would normally scream about an animal being put to death because of a violent act, think of that was the tea party are for one moment. where are they? i was going to say i think anyone who has ever given to these animal welfare people should demand accountability and they should demand accountability from their own local prosecutors who are not prosecuting these crimes which will only lead to other crimes that escalate more violence and become dangerous. neil: we have a homework
assignment, staff will do it, i am going to do it. we look at these, for the life of me i am working on a hunch, i could be wrong, i would love to be wrong, the same protesters showing up at these events, they know the event donald trump is planning with you like the guy would dislike the guy, fine, okay, what should be -- with you like donald trump or not, people who schedule their protests around donald trump events and i know, this is my homework assignment we are going to look at these crowds very closely and i bet you will see some redundancies. you will see something in your faces, i bet you will see the same identical people, we will see the same mexican flags. more after this. v
>> i making sure we have real party unity because we need to win this election, to move the much at stake, the supreme court, on and on i could go. i want real party unity and that is what i am concerned about. neil: paul ryan's way of saying i still have not decided whether to endorse donald trump or not. and odd pick let the end because the highest ranking republican, the guy would be sharing the republican convention and has not committed to its nominee. donald trump just crept over the 1237 delegates he would need. trump has already clinched this thing. the former new york
gubernatorial candidate, very successful business guy. what do you think of paul ryan still holding off? >> i think these people generally will move at their own pace. you have to remember paul ryan is deep in the heart of the washington establishment and his motivation is to move, is going to be as a leader of congress, he is going to engage as many republican congressman to join with him. he got up there and started saying he was the conservative and he is questioning trump's credentials. he was led to say that by others, he has to somehow
justify that statement in the context of having led a bunch of republican congressman away from the conservative end to pass obama's budget. neil: i know you are not a fan of his, fair and balanced it was paul ryan who took a lot of heat for wanting -- to be one of the first republicans to look at entitlements exploding, something donald trump has yet to do and refuses to do. who has the real credentials as a conservative. i would think paul ryan will come back and say i do. >> that is easy for him to say but his actions didn't show it. he went out deliberately to join with democrats and pass bloated and wasteful budget which included funding for planned parenthood, for abortions, which flies in the face --
neil: i am not an apologist for either of them but he got concessions on the growth of entitlements, small seeds to be sure but part of this concern with donald trump is you could allay the concern that he doesn't know how vigilant donald trump will be in getting the debt under control outside trump's remarks that he would refinance some of it. >> i look at -- everybody takes a few words and paints them with a big brush and form their own conclusions about what is being said in these announcements by donald trump. i don't think it is possible to do that. he will clear a lot of these issues a. if he tries to go into any depth he is going to have the press
picking apart words. neil: always good seeing you. we are getting reports, could be exploring a sale into the hulk hogan thing. your insurance company won't replace the full value of your totaled new car. the guy says, "you picked the wrong insurance plan." no, i picked the wrong insurance company. with new car replacement, we'll replace the full value of your car plus depreciation. liberty mutual insurance.
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neil: these guys are criticizing my hulk impersonation. you hear them one after another. far worse guys than me, far worse. but you've heard that hulk hogan and $140 million payout via gawker. gawker is staggering, putting itself supposedly up for sale. former buzzfeed president, now the big cheese at cheddar, no pun intended, john saunder, real smart read at these things. what is going on here and who would buy it? >> you would have to have such deep pockets and strong stomach so buy this company.
the company reported $50 million in revenue last year. the brand is toxic for advertisers. i don't see a lot of revenue growth. peter thiel is backing lawsuit. they have deep pockets if they decide to appeal the verdict. so they already decided to appeal it. i can't imagine who in their right mind would buy this company. neil: who would want to take on the risk of a site brazenly proven to trade on gossip, not even check gossip, not even accurate gossip. it is a bit of a risky pitch, right? >> yeah the way they're putting it up for sale, they're stripping out the 140 million they're kind of reserving, effectively the court decided they have to pay the 140 million. i agree with you. it would have to be someone who so wants traffic, so wants the site -- neil: it does get a lot of traffic, john. i understand it does. curiosity, voyeurs are always interested in dirt, right? >> not what it once was but certainly one of the largest
news sites in the united states. you can imagine a legacy print or television company would want a large digital asset. god, the amount of brain damage you would go through dealing with this lawsuit, i don't see it. neil: interesting. while i still have you, these reports, hardly they're viable, that apple could be hooking up with netflix, time warner could be involved. >> yes. neil: there is a little musical chair stuff going on, i look at the rise of a lot of these stocks and especially netflix, didn't they miss the boat on this? >> well the story is that eddie que from apple met with senior executives at time warner brought up the in conversation the idea of apple buying time warner. how would this come out? this would be intentional leak from time warner side to drive up share price. i can't imagine apple wanting to own cnn and turner. you could to your point, saying,
okay, we want hbo. effectively one for one competitor with netflix. but for apple to get into the direct content ownership business being buying time warner is stretch. my gut it is false rumor. neil: before netflix exploded at best it is costly gamble. >> but apple can pay up, right? neil: what do what do you thinky will do with all the money. >> people that are negative, people negative on the stock the point is they're not innovating enough. where is the television set? how long is the cargoing to go on? when will a car come out? where are they in web services. they don't have all the great cloud services that google or amazon has. they're certainly not deploying cash like they should. there will be more pressure to dividend it out or do stock buybacks. i don't think them buying hbo would be the worst idea if they can pull it out of the time warner conglomerate. my stretch, it was rumor designed for time warner to put
themselves in play a little bit or push up their stock price. neil: get people talking. jon steinberg. great having you, my friend. >> great to talk to you. neil: how much time do you think would be before disney would respond to bernie sanders saying they have rigged pay and pay their people nothing? well disney has responded and this from disney. are you out of your freakin' mind? mickey mouse bad, i know. all right, it is iger, but work with me. i'm better than these guys. [laughter] we asked a group of young people when they thought they should start saving for retirement. then we asked some older people when they actually did start saving. this gap between when we should start saving and when we actually do is one of the reasons why too many of us aren't prepared for retirement. just start as early as you can. it's going to pay off in the future. if we all start saving a little more today, we'll all be better prepared tomorrow.
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neil: you know don wrote me, neil your actually voice is hard. your impressions don't make it any better. don, i'm thinking imus, click the channel, okay? [laughter]. i think they're pretty good. all right, anyway, did you hear about bernie sanders blasting, blasting disney when he was at anaheim, home of disneyland, saying the company lowballs its workers, treats them like you know what. they're underpaid, underappreciated. disney ceo bob iger responding via facebook to bernie sanders. we created 11,000 new jobs at disneyland in the past decade and our company cited 18,000 in the u.s. past five years what have you created? what have you contributed to the
u.s. economy? adding final line, so there. [laughter] all right. childish. larry glazer is fortunately never childish. what do you think of that response? he took him on, larry, we know what you've been up to. we've been up to creating a lot of jobs for folks? >> you know, neil, just shows you how contentious this democratic primary in california really is going to be. no surprise a spat can happen, particularly a big employer in california, bierne who has very strong views. what is surprising disney was the target. this is one of the great american success stories. one of the great success stories in southern california. they have increased employment by 65% in the past decade at disneyland. this is company grown its employment base. also competing globally. they're able to export that content, their movies, brand all over the world in really competitive media business. so i think we need to be careful about chasing our employers out of this country. and look, we're in this together, right?
it has to be politicians and business together, working together if we're going to grow this economy. when you sort of us against them mentality, it shows you exactly how far we've come from where we need to be. neil: we started the show, my friend, talking about protests in venezuela. >> yeah. neil: i'm not saying this is right or left thing. i am saying it is an indictment of basic ignorance of math. they spent like money was going out of style in venezuela when the wind was at their back with all the oil revenues. then it was gone. shrinking tax base. one out of five pay taxes in this country. half don't pay any federal income tax at all. they wonder what happens when the music stops. in venezuela is what happens when the music stops. i'm not saying that is inevitable. it doesn't have to be inevitable. we can't keep going this way. for candidates to go after companies that at least are hiring, in the case of disney whether you like them or not, big in espn or high ticket
prices at disney world and disneyland they are getting job done. they are hiring people. they are doing very things that candidates bemoan we should see more. government isn't doing it, private enterprise is. >> that's right. there has to be some balance in ceo pay. certainly most shareholders, shareholders own the company. most shareholders don't mind paying for performance as long as the company is executing. in the case of disney they're one of the companies that did execute. made $3 billion in the first quarter. the ceo is paid a ton of money. in this case he actually delivered some value. a lot of ceos are paid deliver little value. those should be targets. neil: bingo. >> if you raise wages arbitrarily at high level, disney world, mitt level, middle class families can't go. it is outrageously expensive to travel and go to say cases. we need the destinations made affordable to everyone. you don't make a regressive tax
only wealthy people go to disneyland. that is what happens when you raise wages to excessive level which is what bernie is asking for right now. neil: very good point, larry. it is incumbent upon management of companies in the country to be aware of that, not have a tin ear, not stealing a lot of money from shareholders if you haven't done squat, if you have, put up numbers and been good, then you deserve it. if you haven't, we're going to call out on this show and not in my mickey mouse voice. you're going to die, all of you. meantime, have you seen what is going on with these long lines already way ahead of time for the memorial day weekend, unofficial kickoff of summer travel? it hasn't even officially started and they're a nightmare. oh, there is my luggage. anyway, the airlines have come up with a plan to shorten the wait times. by the way they picked up on one every
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the market guy guessing that. -- digesting that. keep eye on retailers, dollar general, dollar tree, came in with better-than-expected profit around both hitting record all-time highs. that is in contrast to luxury retailer for example, such as tiffany. look at comparison chart, you can see the difference there. we're keeping eye on abercrombie & fitch, a name that has been struggling. it had its 13th straight quarter where the quarterly sales dropped. the stock had dramatic move to the downside, down 18%. 20.$68 a share.
neil: you've probably seen these long lines at aparts, by the way they're starting really early. used to be fried afternoonish, lines going out the yin yang. now they're going out the yin yang. we're told they will extend right through the summer. demand is that strong for travel. but, but, it comes at a time too when the tsa is under fire for making them too long. the airlines too for charging all those checked bags a lot of people carrying bags on plane themselves and making long lines even worse. alex wil cox the guy is legend in the industry. for those that want to go private, he is the guy you want to. anyway, i'm looking at all this, alex, not necessarily whose fault is itbut how do you fix
it? what would you do at this stage? >> neil, there are a few different solutions. can we savor the airlines complain about customer service. tsa managed to turn the tables. neil: that is very good. touche. what happens? >> tsa has a real public policy problem on their hands. they were accused last summer not catching a large percentage of the test objects put through their screening stations. simultaneously, they were told to cut 5000 of their agents. now congress is complaining about the results of their efforts in that respect. they have kind of backed the tsa into a corner, frankly to hear congressman complaining about it now is a little bit rich. but what are they doing? they have to be adequately resourced. they need to actually have agents and resources that they need. i think they need to expand the precheck program dramatically. i am a precheck member. half the time i go it is
frustrating and i lose my shampoo and take off my shoes. i think other real thing we can't ignore what the real effect has been, particularly on short haul air travel in this country. you know i think the wright brothers are turning over in their grave now. if you have got, if i told you between year 2000 and last year there were 3 million fewer travelers between l.a. and san francisco and a million fewer travelers between las vegas and l.a., would you believe that? neil: i would, actually. >> well, it is true and people are deciding to drive or just not go at all as opposed to put up with the air fares. neil: a little while ago, looking at popularity of local hubs great adventure franchise across the country, going to cheryl casone hope they stay local and come to the parks. >> yeah. neil: what i'm wondering about the flipside what you're doing with private aviation and trying to make it more affordable. it is still not going to compare
to commercial but it is getting close in some cases. so who is drawn to you? who are opting for that route or to share a small jet with some maybe, eight, nine, 10 others you don't know or whatever? what is going on? >> well you know, the difference between private jets and public jets are, commercial jets is obviously price point. you can avoid it. sa. give me $7,000 i will take you l.a. to san francisco anytime you want to go with up to six of your friends. alternative is 200 bucks. between 200 and $7,000 is really nothing. we're trying to create the space between those two things and two points. we taken the private jet concept.in fact we launched las, neil. it is called jet suite x. taken largest jet you can legally fly as a private jet, faa says 30 seats. private jet that thinks it airliner, or airliner think it is a private jet. haven't figured out how to spin
it. we have private terminals and privately operated security screen you before you get on board. we do same checks and watch lists. neil: your more comparable rate, alex, flying that with 29 other people you might not know but heading out, let's say, new york to los angeles, compared to commercial air? ncs p ial when you fly in five hours at a time, got 30 passengers and two pilots you can't amortize all the costs. when you fly short haul you get comparable. neil: what is short haul? >> under 500 miles. l.a., san francisco, new york boston that kind of route. basically hour-to-hour 1/2 flight. here is great news. about same price flying commercial, maybe 40 bucks more. we're targetting 40, $50 more than walkup commercial fare. l.a. to san francisco, 300 bucks. l.a. to vegas for $230 each way. that is where the fares will top
out. but we've got them as low as $107 if you purchase in advance. we have fare sale right now, l.a. to burbank for$7 on jet suite x. we're very comparable. you're with 20 other people. you can't show up late. you show up late give me $7,000 we'll wait for you but of course we won't. neil: throw in pretzels and potato chips? no deal. >> free booze. whatever you like up to two drinks. neil: there you go. very mixed up. watch this, folks because this is a trend, catching steam and if those long lines and all the nonsense that's leading to it. so gather 29 of your closest friends or not so friends, get on a plane and fly with a commercial. anyway. you know obviously if you have the wherewithal to fly commercial, put up with these headaches to even think of flying private, still with eye-popping charges going on at
disney, to check into their parks, there must be something going on with the economy here. then i'm reading about the housing boom. i'm reading about new home sales that just hit in the latest period of a 24-year high. i'm looking at all that and beginning to think, hey, maybe the federal reserve is going to hike rates after all. who better to bounce that off of, alan greenspan. the former federal reserve chairman is coming up. it's more than a network and the cloud. it's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated, responsive support. with centurylink as your trusted technology partner, you're free to focus on growing your business. centurylink. your link to what's next.
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roller coasters all morning, neil. hello to you, just for you we're out at six flags great adventure park out here in new jersey. it is beautiful day. the park is already packed. what is so interesting about this new roller coaster, the joker, famous batman character his evil nemesis, one of several rides six flags is launching today. earlier i had the pleasure of riding this ride on live television but my nextels me now not to do that anymore, neil. let's not injure ourselves. but it is really fun ride. they have technical things they're working out. amusement parks and low fast prices and economy, in my mind, people are flocking to the park, they're expecting double-digit increases in attendance at all the theme parks across the country. whether you're five or 50, theme parks seem to be on everybody's radar this year. honestly, do you want to go through tsa lines, neil? i know i do not.
neil: my choice between tsa and all of that and going on that, i saw that when you were live doing that, i think i would go to tsa. unless they had something like this get you through the tsa lines. i mean -- >> well, you know what? you lose your shoes on the tsa line. i lost my shoes this morning on this roller coaster. same difference. neil: wow. jeff flock is at a ballet. you got the short end of that stick. thank you very much. you are a brave soul, cheryl. meantime we are awaiting a donald trump newser in bismarck, north dakota. he had that conversation last night with speaker paul ryan. ryan still withholding his formal support. now the official nominee, looks official, wire services have been tabulating that as of today, thanks to nabbing a few more uncommitted delegates, donald trump has locked 1238 delegates, one more than he
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neil: man, i'm very excited about this. j.r. martinez joining us very shortly, a real war hero. talk about turning a life that looked like lemons early in his young life and now he is making lemonade and showing how it is done, how not to whine. something coming in handy at this day and times. brings me to politics before we get to j.r. and what is going on in north dakota. we're awaiting donald trump. this will be a basic news conference. i'm not sure actual deal here, charlie gasparino gas on the folks donald trump is courting as he was ticking off a lot of regular old republicans yesterday. what is going on here?
>> neil, there is never a basic trump press conference. neil: you're right about that they are pay per views. >> what we have now behind the scenes is kind of an interesting dance that donald trump, the presumptive gop nominee, i guess he is now the nominee. he has the necessary delegates, is that he is doing a dance with conservative economists. we don't mean just run-of-the-mill conservative economists but those who advocate what is known as supply side theory. we know that supply side is all about lowering marginal tax rates, that will increase revenues in the future. the theory, it doesn't lead to massive deficits because businesses expand and tax revenues pour in. so he has been talking with some supply-siders like steve moore of the heritage foundation, larry kudlow, the television commentator, the one guy, the one guy i hear. those guys are out in front. the one guy he is behind the scenes talking to a lot from one source, talking regularly with this guy, is the guy you know
very well, his name is arthur laffer. art laffer is the father of supply economics. the old laffer curve. interesting to hear about what art was say about donald trump speaking to you about a year ago. >> i think he would like donald trump let me tell you our group in california, the social set there, there were a lost donald trump surrounding reagan for many, many years, even after he became president. my godfather was a man named justin dart. bill smith, bill wilson, all of those people were very much in the mold of donald trump. >> we should point out art laffer was in the reagan administration, at least he was guru of ronald reagan, and he was talking about was ronald reagan. we should point out larry kudlow was too, but what is interesting about this, if you want to establish conservative economic bonefides there is actually no better person to get than art laffer. he is the guy a lot of people attribute the reagan economic
revolution of lower taxes and revenues coming in. neil: iconic figure. he liked bill clinton policies. he was a fan of jfk and his tax cuts. >> all about lowering taxes. remember bill clinton lowered capital gains taxes which art laffer was big proponent. we have a call out to laugher. he will get back to us. we will get the depths of this interesting relationship. neil, back to you. neil: cool, i. thanks, charlie gasparino. we announced a little while ago, it is official, wire services are dotting is, crossing ts, adding it up, 1238 donald trump appears to have won as republican leading candidate, only candidate for president of the united states. has one more that he needs. these last few stragglers who were uncommitted delegates who suddenly committed to him. before the final race of 300 delegates. he already won it. no republican has earned more votes in election cycle than mr. trump. does that bring out donors?
let's ask nicole thick pour, gop fund-raiser extraordinaire. what do you think? >> hey. you know what? charlie gasparino and you were talking about, there is your vehicle, the vehicle to bridge the gap between donald trump campaign and the donor, and establishment donor and leery donor. i think that you have somebody like art laffer, steve forbes, you know, stephen moore and larry kudlow, they actuallyhave an organization focused on economics and i think if you get someone like this to make calls on behalf of donald trump, and you know, say that he is endorsing, you know the economic plan that you see fit, i think that would be the final vehicle to bridge that gap. and he is going to need it, i just doesn't think donald trump can do it. neil: not winning friends like susan martinez. that happens i understand but why is wasting so much time, that is donald trump, not so much on ryan back and forth on ripping her?
she is a republican. save it for, you already won, you don't have to do it? >> this is probably evidence that he is not taking advice from any consultant because i think any consultant would tell him, stop with this bully rhetoric. and focus on the issues get presidential, trump said he would be presidential once he got nomination. let's see it. let's do it. focus on the economy. let's focus on immigration. focus on global terrorism. let's focus on big issues and get over the hump because hillary clinton is flailing in the wind with all of the stuff she has got going on. if we can't muster up and win the nomination with all the stuff she has got going an, i mean it is our fault. neil: talking about the election. we'll see. thank you very, very much. ine touretionsg in u.s. ar
understand he is pretty guidancer. i also understand he is a great actor. now he is back at college. man, oh, man, i can't keep up with this guy. good to see you. >> good to see you. we have a long-lasting relationship, 12 years. 12 years first time i came on your show. neil: i know. all the pain and suffering you endured and all the operations and skin grafts and before. remind people who don't know your story, what happened to you. >> i was in the united states army. with 11 bravo infantry. 100 first out of fort campbell kentucky. i was in iraq during initial invasion. on 5th of april i was driving a humvee through city of karbala. i ran over ied. i sustained burns over 30% of the my body. spent over a year san antonio, texas, recovering. during that time frame when you and i met early in the recovery
process, i fund purpose again. i found my ability to continue to serve. what that was essentially use my second opportunity at life, to ultimately help people that are still within their first opportunity. and part of those individuals that i was helping was the veterans and their families. i became a very big advocate. i thank you so much in those days you gave me so much time on your show. neil: you didn't take my advice, act like a victim. i said, act like a victim! you refused. >> you wouldn't allow me to do that, if i did that you would not allow me to do that. neil: you talk about, people forget all you do for veterans, i wonder what your thoughts were, va secretary, might have been a slip of the tongue, doubled down comparing wait times day after, to wait time at disney for rides, no big deal. >> right. neil: what did you think? >> i think knowing the secretary and having done a lot of events, spent a lot of time with him in rooms where he is interacting with veterans and talking about what he is addressing, i think definitely as you state ad slip
of the tongue. i don't think he is saying it is no big deal. what he is trying to get at, trying to explain to people, sometimes at va, culture, attitude of people interacting with these veterans, maybe not as passionate anymore. maybe not enthusiastic doing what they do on daily basis. what he is trying to do, change the culture within a democracy. he is trying to come in there, saying i want people, when they finally get into the appointment. finally get into the position, they will have this amazing experience. they're still waiting. that is the problem. neil: kind of sluffed it off. >> even though i we should attack what he said and secretary mcdonald knows better, about the you're right at end of the day they're still waiting, and that is the problem. instead of us focusing, right now, i'm sure you know this, there is $3.4 billion potential cut to the g.i. bill. those are things we have to start, instead of attacking each other, we need to focus on here i am going to school, freshman
in college here in new york city, but if that cut happens, guess what, me who was promised get the ability to go to college will no longer have the ability if this happens. neil: very good point. >> we need to start, essentially focusing on and attacking one another, start focusing on these issues. neil: you ought to talk to the candidates because they're going back and forth at each other. >> absolutely. neil: donald trump talks about he said already of the iraq war, big mistake, poorly, handled, what a disaster, you heard all he said, under president trump wouldn't happen. >> okay. that is great. that is your opinion. that's what you think but at end of the day you and i agree, we've always stated this, i stated this on the show, we can not attack individuals and men and women and families ultimately willing to put themselves in that position. neil: do you have any regrets, any of your buddies what you've been through and your families? been to many funerals i'm sure you think it was worth it? >> for me it was 100% worth it. for me it was about i have to trust the leadership, commander-in-chief, no matter what side he may be on, whoever
is at very top and people fall under that individual. neil: i always remember that about you early on when we started talking about president bush and president obama, you would never take sheep shots at either. >> here is the mentality. here is what i think as individuals watching your show we have to understand, as much as we may disagree with one conflict or both conflicts or maybe not disagree with them, we have to understand, if we did away with military all in all, what happens if we agree with the conflict? who is in place to go fight for us? who is in place to defend us? we have to sit there applaud individuals still voluntarily joining our military. neil: do you ever think we should down scale a little bit? donald trump was talking about, troops all over the world. 60,000 in japan. 40, 50,000 in south korea. by and large we're paying for them and what are we doing there? do you think there is vital role u.s. soldiers are there with no conflict to make sure there isn't one?
>> to some extent yes. obviously i'm not knowledgeable in the sense of kind of the back end and everything that happens on day-to-day operation there and -- neil: you actually are. >> but through history, but i think there is to some extent. you immediately pull out of a situation, you kind of undo everything we worked hard to ultimately -- neil: do you think that is what we've done or rick doing? >> yes. yes. and you know, this is what i want people to ultimately walk away, this is what i always said to people. let's focus on what we can control as americans as people in this country, greatful to the men and women and families that sacrifice on daily basis. let's be, memorial day is coupling up as you know. 12:01 p.m., iraq afghan veterans in america, doing amazing advocate, asking people go silent. it is memorial day. remembering men and women made the ultimate sacrifice. you know this, neil, we're losing some veterans in iraq and
afghanistan and other conflicts around the world. we're losing men and women on our own battlefield which is in america. we're losing so many to suicide. and our candidates on both sides need to start having serious conversation, as much as we put importance on global terrorism and immigration and all the other things we need to focus on veterans issues as well. we need people, everyday americans that are gritful and appreciative of -- grateful of service, expand our voices and allow our voices to be heard and take it seriously. neil: you took a lot of hell for us. the least we do for you. >> yeah. when are we doing dancing lessons? neil: when i saw that, my wife pointed out, i said no. >> i think i could teach you, cha-cha. neil: i don't mind when the other person is doing all the work, sitting there with pena colada or something, you were amazing. >> it still -- neil: get to sit down. >> not one particular form. neil: you were awesome also. you had to rub it in. go ahead.
now in college, studying psychology. can you imagine games he could play with your head? j.r. martinez, thank you, u.s. army veteran extraordinaire, not once, not once with many years pleasure of knowing him has he complained. someone who loves being a victim it ticks me off. we'll have more after this. you didn't read
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coverage compass gives you the policy information you need at a glance. available 24/7 on your mobile device. switch to liberty mutual and you could save up to $509. call that's see car insurance in a whole new light. liberty mutual insurance. neil: welcome back, everybody. i'm neil cavuto. jerome powell add to list of federal officials, advocating seeing the likely need for rate hike even as soon as june, in in powell's case, hike being fairly appropriate soon.
interesting juncture for market as well. seem to anticipating the cut they didn't see come at all could come as soon as next month. we'll not go into interest rate detail policy with alan greenspan but we'll get the lay of the land from one of most extraordinary fed chairman the nation ever had. alan greenspan, former head of the federal reserve with us now. dr. greenspan. good to have you. >> glad to be with you. neil: first on expectation for a cut, not so much whether it will happen, doctor, people seem to be okay if it does, what do you make of that? >> well, first of all, let me just say that, what the fed does at this particular stage is less important than what the markets are doing and what the markets are beginning to show us, acceleration in money supply for the first time in a very long time.
i mean m-2, i don't mean huge balance sheets of central banks, but we have a global problem of a shortage in productivity growth and it is not only the united states but it is pretty much around the world and it is being caused by the fact that the populations everywhere in the western world, for example, are aging and we're not committing enough of our resources to fund that. we should be running federal surpluses right now, not deficits. this is something we saw, we could have anticipated 25 years ago and in fact we did, but nobody's done anything about it and this is the crisis which has come upon us. it's slowing productivity because entitlements are crowding out savings and hence, capital investment, capital investment is the critical issue in productivity growth and productivity growth in turn is
the crucial issue in economic growth. so we're running, we're running at the end of the -- this period to state of disaster unless we turn it around. neil: no one is showing willingness, alan, to your point, on the left of talk of more spending and on the right more talk of bigger tax cuts without paying for them. we're expecting to hear later on in this hour, donald trump speaking in north dakota. he has been loathe to touch entitlements and that could explain i guess the bumpy relationship he has had with speaker ryan who has yet to endorse him. what do you think of that trump position not to touch entitlements at least for the te being? >> this should be the central issue of the presidential debate because unless and until we can rein in entitlements which have
been rising at 9% annual rate in the united states and comparable levels throughout the world, we are going to find that productivity is going to maintain at very low rate of increase and indeed, it is very likely that the productivity increase for the first half of this year could very well be close to negative. certainly for the first quarter, or the fourth quarter of last year. the data will get revised -- neil: do you think we're heading into recession? do you think we're heading into recession? >> i don't think that is our problem. our problem is not recession which is a short-term economic problem. i think you have a very profound long-term problem of economic growth at the time when the western world there is a very large migration from being a worker into being a recipient of social benefits as it is called.
and this is legally mandated in all of our countries. the size has got nothing to do with the rate of growth in economic activity but if we stay down at the 2% economic growth or less in the united states and elsewhere, we're not going to be able to fund what we already have legally obligated to spend. so, this should be where the debate is. it shouldn't be on 20 million different irrelevant issues. this is the most fundamental thing confronting not only our country, but all of our allies and to a very substantial extent, by frankly, in direction the developed, the developing world as well. neil: but neither of the prominent candidates in this country are addressing that and i guess what i'm asking you is, if you had to choose, whose policies, are least worrisome, whose would they be?
>> well i happen to be a fan of paul ryan's, who i think is a very sensible political economic type. neil: well he is not a fan of donald trump. he is not committed to donald trump yet. are you surprised? >> i'm, not surprised at all. neil: are you a fan of donald trump? >> not exactly. neil: so between he and hillary clinton, where would you go? >> giving me a very tough choice and, i think will, at this stage i will not comment on issue. i have yet to figure it out. neil: i had david stockman here as you know, ronald reagan's former budget director, guy who brought to the woodshed for famously warning at time of the deficits and debt to come, the
argument back then was the economy would boom, and it did, not only dramatic cuts in interest rates under your predecessor paul volcker but the tax cuts ronald reagan and really sparked economy. what happened as you point out, doctor, with all those extra revenues, republicans proved just as skillful spending that money and then some as republicans claim democrats are. so i wonder whether you agree with mr. stockman that it could be too late? that we could be on the verge big ol' market economic collapse? that is what he said? >> i certainly did not go that far. we need not go that far. in fact it strikes me that, if we all get together and have a real debate, and you are quite correct, this is bipartisan issue. entitlements are the third rail
of american politics. the politician who touches them loses. so you have a 9% annual rate of increase in entitlements mandated by law. has nothing to do with the economy. it has to do with age and health and the like. neil: right. >> and we don't have the economic resources to fund that unless we can curtail entitlements. the data shows shockingly, since 1965, the sum of gross domestic savings, and entitlements, as a percent of gdp has been remarkably flat and what that tells us, all the way back to '65, we've essentially been seeing one dollar to one dollar tradeoff between entitlement growth and gross savings decline and that, despite the fact we are borrowing savings abroad,
kept our rate of capital investment as percent of gdp going down. that in turn has meant productivity has slowed down which means that economic activity will slow down, which means entitlements will be more and more of a problem and there is no way out of this except to confront it straight on and there is where the debate out to be. everything else frankly will turn out to be peripheral. neil: you're right about that. let me ask you, alan, if you could help me with this, there are fears, given some of the run-up recently in housing numbers, in fact home sales in latest period, 16.6% clip, biggest advance in 24 years, some are worried i say worried in a good way we're looking potential housing bubble, interest rates are so low so long it created a bubble that could produce another housing meltdown.
do you share that? there are lots of problems of cyclical nature out there but i think secular problems, the long-term problems are so commanding at this stage we really have no choice but to focus directly how to solve this. we have to right now figure out a way of getting surpluses in our budgets throughout the western world because europe is in trouble. we're in trouble. in fact japan is in worse trouble. neil: right. >> japan's problem is of course, as you know they're aging very rapidly. neil: well, so are we in this country too, right? let me ski about what is going on in venezuela, doctor. we've seen these protest, riots. there is video we got to fox showed people collecting and eating out of garbage cans, a lot of folks looked at that, said you know, that could happen
here. it could get off the wheels fast here. what do you think? >> on the way there we basically go through greece but venezuela is about to collapse. there is no way of getting around it. fundamentals are falling apart and at some point there will be revolt internally as far as i can visualize it. neil: do you think that spreads as some said, could spread throughout all of central and south america and spread totries you alluded to. europe they're sick of tightening their belts and constant stumbling from crisis to crisis, rescue to rescue and this could be part of a global pandemonium? >> you know, let's not go to extremes. venezuela is the extreme on the continent. used to be zimbabwe.
now we have venezuela. there is going to be an internal revolt there if they don't get that resolved. neil: should we do anything to help them? should we do anything to stablize them? >> i don't think we can. i don't think they would accept it. and i don't think they have the mechanisms to accept, they don't have infrastructure that would enable them to accept the type of aid that they need. neil: what did you think of the deal? that was something again, commonwealth not nearly the crisis that civil war type environment. >> commonwealth what? neil: puerto rico. >> what deal? neil: puerto rico, restructuring its debt? >> that is, that is domestic political issue. i mean obviously. we have seen issue of unfunded pension funds obviously of puerto rico and many states in the united states and vast countries around the world. this is fundamentally what the
issue is. we used to be in state where those things did not happen. those things were relatively stable. neil: yeah. >> we have a huge number of problems which everybody is aware. even china is running into trouble. india is not doing as well. it has a -- problem. we are relatively speaking in the united states doing better than most. not as though it is the united states falling behind. it is the fact despite the fact that our entitlements have gone up from less than 4% of gdp in 1965, to almost 15% now, this is huge chunk of gdp. neil: but you became chairman of
federal reserve right before the 1998 stock market crash. we have other crashes since, not that you lose a quarter of your value in one day. we had other crashes. we had 9/11. we had the meltdown almost decade ago. are we due for something like that again? what do you say? >> first of all the dot-com boom and indeed the, the earlier crisis where the dow fell 23%, neither one of them left any strong negative economic inputs. and the reason essentially is that that people who held toxic assets at those times were basically not funded by debt. there was very little leverage
went on in the united states book in 1987. neil: so something like that, now is not is not the same scenario? whatever happens would not be something like that but something potentially worse? >> a mere collapse in stock prices per se is not a problem for the economy as a whole. it obviously is for the whole of the stocks, securities and businesses and the like and it does affect capital investment but it doesn't break the structure of the economy as a whole, unless the whole areas are highly leveraged. not the type of asset is the problem but who holds it. when you have basically the subprime mortgage problem, it wasn't so much the subprime mortgage which frankly worked very well until they started to get go a little bit -- neil: a little too far. >> questionable practices. neil: right.
>> a little bit berserk. neil: doctor, we'll come to a quick break here. i hope you indulgence. if you can sit through that, we would like to come back with you, get your thoughts where this crazy world of ours is going and what you make of the landscape for everything. more with dr. alan greenspan after this. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up
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i go back long covering this guy when i used to do nightly business report and he would do commentary at a firm and became a really big deal as you know and back with us now. dr. greenspan, one of the things always interesting to me and wonder if you can get me in on fed intrigue, you look at market swings and big down days, they punctuate the long-term effect people think and we get sidetracked, kind of paraphrasing, yet when i think the federal reserve makes whatever decisions it tends to make, always looking at markets. i have the sense more so now, that than ever before. is that a good thing, bad thing, what? >> first of all, federal reserve tries to look what is causing the economy to move, causing financial marks to change.
obviously that changes period to period. for example, during the dot-com boom, there was very significant valuation of the impact of productivity which was roaring ahead at that point and the issue, what do you do enemployment rate tightens up, ordinarily you would, we incident at that point. reason was productivity gains were necessarily strong and we didn't have to do that. neil: productivity was such that it wasn't a risk to inflation getting out of creel? >> that's exactly right. and so that the fed had to make decisions which historically we wouldn't have made, namely the 3 1/2 or 4% unemployment rate was inflationary. yes and no.
depends on what is happening to rest of the economy. similarly when which came out of the october 1987 crash, which was then and now still sharpest single-day drop in the dow -- neil: that's right. >> we didn't, we had to feel our way out of that. and we thought that it was going to be a lot worse than it turned out to be but, we calibrated in such a manner, based on very little knowledge, that turned out to be the right thing to do. neil: you were flying by the seat of your pants but you flu flu -- flew pretty well. we are talking about the presidential race and you eshoo politics because it is a swampy type of race, does it bother you, hillary clinton and donald trump are not fans of the trade deals many argue brought economic boom to this country? many are not of that opinion but
hillary clinton is in the odd position of rejecting the very trade deals that triggered the large job gains she brags about during her husband's administration. donald trump pretty much saying the same for different reasons, that these trade deals have given american workers the shaft. what do you think of that kind of talk and the threat of an insular america? >> well, i'm obviously in favor of trade deals. people don't realize, they think that you're going to shut off, for example, imports from china, that somehow that will create jobs in the united states. it doesn't. instead of getting goods out of china that you will get them out of the philippines or someplace else but before the united states they will try other places around the world where labor costs are perceived to be
cheaper. issue of foreign trade is something that helped this country grow all the way back to 1790. the prom all of sudden we're -- the presumption we're all of sudden turning off on trade is very narrow-minded in my impression. neil: would alan greenspan build a wall along the mexican border? >> [laughter]. i don't have the physical staff to do it. neil: that is a very good answer. i think they call that a non-answer. but you know, i was thinking of the migrants as well, alan, and what is going on. a lost nations are building walls. some for very valid reasons, for concerns and safety, attacks in paris, brussels, what have you, so you understand where it is coming from but do you worry the global message this is sending, that it is a bin much of, what economists liken to a lot of
tents locked up in the same campground? >> look we've been through generation after generation which free trade propelled our country 100 years after we were, sort of hanging on the eastern edges of atlantic seaboard barely surviving. 100 years later we were the most productive economy in the world. now that took an extraordinary amount of effort but fundamentally, it was based on free trade and if you cut down on imports, for example, you have to ask yourself, whose purchase are you basically cutting down? if people, for example, can get much cheaper clothes from china, you shut down trade and they will be paying much higher prices. i don't see to whose advantage
this is. the presumption that it's a job killer does not square with the historical facts. trade is a positive force for employment at all levels of the economy. neil: alan greenspan, it has been a real pleasure. thank you for taking the time. some historic moments there. i will get back to you on the equipment you will need for that wall, alan, okay? i get the shovel and a lot of bricks but we'll get back to you. real pleasure, thank you very much. alan greenspan, the former federal reserve chairman. think of the time he came into office, only about six weeks in, the market crashes. its biggest one-day drop ever and since. he kept his cool, so did a president named ronald reagan. there were very different times, very different in those days. people talked to each other. we'll have more after this. and i'd like to... cut. thank you, we'll call you. evening, film noir, smoke, atmosphere...
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"orange is the new black," they make that. films didn't do quite as well as people would have hoped. look at netflix. netflix is getting a boost today because of rumors about apple. apple apparently considering at one point acquiring time warner. not going through that deal. a lot of investors expecting they go with digital distribution company. caribbean cruise lines getting a boost as well. more cavuto after this. the heirloom tomato.
s. neil: i think alan greenspan made it very clear. the former fed head took the reins right before the 1987 stock market crash, biggest one-day drop we've ever seen before or since, saying if we don't focus on entitlements and at least reining them in, that could be preview to coming attractions. we have the national federation of independent business, president and ceo. what do you think he was saying on that, entitlements? >> thank you for having me, neil. entitlements of course are out of control and they have been out of control for a long time and to the extent they crowd out private gdp it is a serious problem but the real problem in our view with the economy is taxes, crushing regulations and the obamacare cost being out of control and now with the debt spiral. we argued those are equally as important as entitlement.
neil: but he said none of that. he said those are serious problems, all the ones you mentioned, at least some of the ones he touched on as well but if we don't get a handle on our bloated government led by our entitlements and other ways, not saying entitlements are a waste, but to slow their growth everyone is going to be hurting. what do you think of that? do you think candidates are ready to talk about stuff like that? >> well presidential candidates and congressional candidates have been sort of notorious not taking on entilement reform, with the exception of 1990s, republican congress in the person of rick santorum forced welfare reform and president clinton vetoed it three times and he finally signed it. that was really the last time you saw any real reform to entitlements. certainly something that should be a part of this debate. but for small business members, of nfib, they mention in all of our surveys that taxes, regulation and health care costs
are things costing them profits. they can not raise prices and they're having very difficult time hiring. neil: juanita, thank you very much. excuse me cough. i apologize for that. the nfib ceo and president, argues on behalf of her members quite well and forcefully. we're watching a couple of developments here. hillary clinton gathering with unions. wants to put a fiber-optic al death blow to bernie sanders in california but polls are dead-even there, can you imagine she loses there, even though she might get delegates she might need to get the nomination. she goes into philadelphia limping. donald trump may have been watching that exchange with alan greenspan, you never know. he is concerned about the things alan greenspan wonders he is about? or what paul ryan is concerned about? those two still are not on the same page, after this. you wouldn't haul a load without checking your clearance.
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>> entitlements are crowding out savings and hence, capital investment, capital investment is a critical issue in productivity growth and productivity growth in turn is the crucial issue in economic growth. so we're running out, we're running at the end of the, the end of this period to a state of disaster unless we turn it around. neil: all right. alan greenspan, the former federal reserve chairman is very worried the government is getting big. no one, not republicans, democrats are doing anything about it. big, big. sounds a lot like judge andrew napolitano, bemoaning government out of control. what do you think is his message? he was fair and balanced basher, judge? >> you know he is a brilliant, brilliant guy and historic
figure and i'm probably not the best person to comment on what he said but largely i agree. much of what he said is unasailable entitlements are crowding us out. here is number he knows but didn't address, the federal government collects 2.5 trillion a year in revenue. one trillion goes to pay the debt service. one trillion goes to entitlements. that leaves a half a trillion to operate the government. obviously we can't keep doing that, particularly if we're going to borrow money for wars and borrow money for obamacare and add 4 or $5 trillion in debt to each presidency. president obama added 7, it might be a little more before the end of this year. with respect to trade, he is exactly right. free trade keeps prices down. let's people spend less. give them money to invest and that produces more jobs. neil: do you ever worry someone wants to keep things simple, that government doesn't get so
unruly that we are it they are the master and we're its slave, there is something fundamental greenspan warning about, he is brilliant economist and mathematician, even math 101 is alien concept in washington. much more money going out than coming in. that is not sustainable. i'm not saying we become venezuela, what is going on in the horrible video we've seen. only difference with us we can print money. i don't know if that is such a great saving grace? >> of course it is not a saving grace because printing money either leads -- it always leads to inflation and printing of money means actually we're borrowing it from the fed and adding to debt sheets and pushing obligation off until the future. this is something that donald trump is going to have to address now that he is, certainly is the republican nominee. mrs. clinton i think would continue to do the same thing that, not her husband, who balanced budget.
her husband was the last president that balanced budget. she wants to do the same thing barack obama has been doing but look at the model of government. i'm not talking about defense and i'm not talking about justice. i'm talking about government providing services. tsa, a disaster. veterans administration? a disaster. the post office a disaster. government guaranteed revenue and clients and no competition. recipe for failure. neil: i heard one brilliant guy, now book ending him another brilliant guy. i think i can die now. all right, we'll have more after this. >> all the best.
for not telling the truth and dealing with runaway government, runaway entitlements that have to be slowed or we are in trouble. interesting stuff on markets, the federal reserve should pay attention, should not be the defining clincher for any move up or down. >> donald trump ready for his victory lap, he is going to speak on the heels of news that he has reached the magic number of delegates he needed to clinton the republican nomination. the associated press, welcome to "the intelligence report". trump reaching the magic number of 1237 by securing the support of a number of unbound delegates. we were here any minute in north dakota, we will bring it to you live. president obama in japan launching his harshest criticism yet at donald trump saying foreign leaders are rattled by trump. of course they are rattled.